# Perspectives on EPA / NHTSA Revisions to the Fuel Economy Label Luke Tonachel Senior Analyst, Transportation Program Natural Resources Defense Council EPA MSTRS Meeting, Ann Arbor, October 5, 2010Slide 

# NRDC Preferred Approach
• Prominent letter grade system

– Single scale for all cars and trucks 

# • GHG basis for comparison across all technologies • Clear operational cost impacts • Include fuel consumption metric

2Slide 

# Advantages to Preferred Approach
• Simplicity

– Letter grade system promoted by expert panel because everyone understands it.

– Provides a full view of choices by putting all vehicles on the same rating scale.

– Boils down complex information so it can be factor early in the buying process.

– Operational cost: ‘save’ vs. ‘spend’ 

## • Fair assessment

– GHG basis for rating shows environmental impact while also being applicable across technology 

## • Promotes clean technologies
3Slide 

# Hybrid and Plug - in Models Ramping Up Vehicle Type Already in Market Total by Model Year 2015 Conventional Hybrids 22 52 Plug - in Hybrids 0 18 Battery Electrics 1 32 Fuel Cell Vehicles 0 6 Total 23 108


# • Clear need to address advanced technologies • Differentiation could help sales of new technologies 4 Number of Electric Vehicle Models Introduced or Expected to be Introduced in U.S. Market

Source: Alan Baum & Associates, Sept 2010, http://baum -assoc.com/EVForecast.aspx .Slide 

# Consumers Shop Across Vehicle Types
• EPA Pre- Focus Group Survey

– **“Most considered more than one vehicle and shopped across vehicle types”**  • **“More than half (53.6%) compared two to three vehicles before making their final decision...”**  • **“...when it came to the types of vehicles seriously considered, more than three** **- fifths (62.8%) considered more**  **than one vehicle type, with a third (32.9%) considering two vehicle types and another fifth (19.7%)considering three**  **vehicle types.”**

5 Source: EPA, Fuel Economy Label Pre - Focus Groups Online Survey Report, EPA-420 - R- 10 - 907, August 2010Slide 

# Survey: Consumers Focus on Size/Capacity and Fuel Economy

6 Source: EPA, Fuel Economy Label Pre - Focus Groups Online Survey Report, EPA420- R - 10 - 907, August 2010 Top AttributesSlide 

# Many Choices of Class and Fuel Economy at Single Vehicle Size

7Slide 

# Potential Vehicle Choices within a Footprint Models Footprint: ~43.5 ft2 MPG (Adj. Composite) Toyota Prius (car) 49.4 Ford Escape Hybrid (truck) 32.0 Mazada3 (car) 24.6 – 28.9 Ford Escape (truck) 25.0 – 20.4 Mitsubishi Eclipse (car) 19.8 – 23.7

8 Models Footprint: ~48.0 ft2 MPG (Adj. Composite) Lexus RX 450h (truck) 28.7 – 29.4 Mazada6 (car) 21.0 – 25.4 Volvo XC 60 (car) 18.5 – 21.3 Mitsubishi Endeavor (truck) 17.2 – 18.4Slide 

# Summary

• Single scale for all vehicles is crucial

– Enhances usability by demonstrating the spectrum of choices, independent of vehicle type 

## • Letter grade system is key for simplicity

– Easy to understand, the letter grade enables efficiency and pollution to be a large factor early in the buying process • Early shopping process enhanced with operational cost ‘save’ or ‘spend’ 

## • Together, these attributes serve to promote broader commercialization of advanced, clean technologies that are increasingly being developed, providing an opportunity to leading manufacturers.
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